Report sheds new light on problem of poverty

Despite an increase in jobs, there was no reduction in poverty in Wisconsin between 2013 and 2014 under a broad measure developed by researchers at the University of Wisconsin.

Monday's release of the eighth Wisconsin Poverty Report, produced by the Institute for Research on Poverty, showed that the poverty rate remained flat.

Unlike the federal government's official poverty measure — which is based on pretax cash income — the Wisconsin Poverty Measure accounts for family income and government benefits.

Under their measure, researchers pegged the state's poverty rate at around 10.8%.

The official poverty rate for Wisconsin — based on pretax cash income — was 12.1% in 2014, down significantly from 13.4% the previous year.

In 2014, the official poverty threshold for a family of four was $24,008.

The government programs provided a meaningful cushion for hundreds of thousands of Wisconsinites, and tens of millions of Americans, during the aftermath of the Great Recession.

"We're kind of moving in the right direction," said a report author, Timothy M. Smeeding. "It would be nice if the economy picked up more."

Under the Wisconsin Poverty Measure, Milwaukee County had the highest poverty rate of 17.3%, while Waukesha County was at 6.4%. Washington and Ozaukee counties combined for a poverty rate of 4.4%.

In their report, researchers noted that the effects of the government programs "are beginning to shrink, both because of the weak recovery and because of changes in the SNAP program (food assistance), payroll taxes, medical expenses and work-related expenses."

As a result, the Wisconsin Poverty Measure has remained "more or less unchanged from 2009 to 2014. Hence, progress against poverty is flattening out as the recovery remains fragile for low-income families," the researchers said.

The researchers concluded, "The weak labor market recovery underscores the importance of a safety net that enhances low earnings for families with children, puts food on the table, and encourages self-reliance — as Wisconsin's safety net does — and in doing so makes a big difference in combating poverty."

The safety net has improved the lives of children, Smeeding said. He noted that while the official poverty rate for children was 17.6%, it declined to 11.8% when government programs are counted using the Wisconsin Poverty Measure.

"The programs we spend money on, refundable tax credits and food share, those are working," said Smeeding, the Lee Rainwater distinguished professor of public affairs at the La Follette School of Public Affairs.